China Continues to Overpower Global Renewable Energy
Not only has China become a major force in the production of renewable energy equipment such as wind turbines and solar panels, but it is also using the huge financial strength of its banks and companies to become a powerhouse in the production of renewable energy throughout the world. Its massive state owned companies which have become huge by leveraging their large domestic bases have started to acquire companies left and right across different countries. China Three Gorges Group which is the owner and operator of one of the world’s largest hydroelectric projects in the world has aggressively expanded into wind and solar energy as well.
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With billions of dollars in profits pouring in every year, the company is using its money power to acquire green power assets in countries such as Germany, Brazil, USA and Chile. CTG has ample resources, with 563.7 billion yuan ($82.8 billion) in assets including 18.7 billion yuan ($2.7 billion) in cash – more than double the price of Duke Energy’s Brazilian dams. The company earned 28.8 billion yuan ($4.2 billion) in profit in 2015 on revenue of 63.5 billion yuan ($9.3 billion).
The company recently bought 10 hydel dams from U.S utility Duke Energy in Brazil and also submitted a bid to build a giant 8 GW hydro plant in Amazon. The company has also been buying up green assets in Malaysia and Germany. It is also using its association with Portugal’s national power company, Energias de Portugal, to make inroads into the USA power market. The company has become one of the largest renewable energy groups in the world even as other large groups such as Accionia and Iberdola retrench due to financial difficulties. Other large Chinese power companies such as the China State Grid corporation are also looking to expand overseas to diversify their sources of revenue and profit growth. The company has spent $22 billion in Brazil, Australia, Italy, Greece and Portugal. In 2013, it made China’s biggest utility acquisition in a developed country, paying $6.7 billion for 60 percent of Australia’s SGSP (Australia) Assets Pty. Ltd., an operator of gas and electric distribution networks.Google+